Time value of money worksheet with answers

Free printable Time value of money worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________   Date: ____________

1.Easy
years0123…13PV = ?€8 000

You will receive €8 000 in 13 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €8 000i = 2.5%n = 13
PV = €
2.Easy
years0123…9PV = ?€500€500€500…

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €500i = 2%
PV = €
3.Medium
years012PV = ?€25 000

You need €25 000 in 2 years. An account pays 3% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €25 0003% / 4n = 2
PV = €
4.Medium
years0123…9PV = ?€10 000+3%+3%…r = 5%

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 3% per year forever. The required return is 5% per year. Find the value PV of the property today.

C1 = €10 000g = 3%r = 5%
PV = €
5.Hard
months0123…72€25 000A?AAA

A loan of €25 000 is repaid with equal monthly payments over 6 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €25 0007.2% / 12N = 72
A = €
6.Hard
months0123…72€30 000AAAA3.6% / 12, I = ?

A loan of €30 000 is repaid with equal monthly payments over 6 years at 3.6% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €30 0003.6% / 12N = 72
I = €

Answer key

  1. 1. PV = 5803 €
  2. 2. PV = 25000 €
  3. 3. PV = 23549 €
  4. 4. PV = 500000 €
  5. 5. A = 428.6 €
  6. 6. I = 3401 €

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